I have a really strange issue with a Lion Server. 10.7.5
There are several user accounts on the machine some are local, some are OD accounts. For the most part they work just fine.
Mail and Calendar accounts seem to be ok and indeed when you set up the Address book account this also work and syncs in both directions.
Here is the odd issue: For certain accounts, iOS devices do not seem to register them to be available to set as default. The device can use them properly, they do sync fine, if you hit 'import SIM contacts' they will show up as options to choose as the destination account, but if you have iCloud and another contact account set up, they do not show up as options to be chosen as the default contacts account. If they are the only contact accounts, then the 'Set Default Account' option does not even appear in the Mail, Contacts, Calendars settings under Contacts. It appears fine under Calendars and Mail.
When I installed more than one of the 'faulty' accounts on a single iOS device, then deactivated all but one, the Default Account option reappeared (there was also an iCloud account present), but it soon disappears on its own.